Will somebody help me figure this out and help with formulas

Name: Instructor: Intermediate Accounting. 15 Edition by Kieso, Weygandt, and Warfield Date: Course: P6-4 (Evaluating Payment Alternatives) Howie Long has just learned he has won a 500000 prize in the lottery. The lottery has given him two options for receiving payments: (1) If Howie takes al the money today, the state and the federal governments will deduct taxes at a rate of 46% !immediately (2) Alternatively the lottery offers Howie a payout of 20 |equal payments of Howie will be taxed on each of these payments at a rate of 36,000 with the first payment occurring when Howie turns in the winning ticket 25% Assuming Howie can earn an 8% rate of return (compounded annually) on any money during this period, which pay-out option should he choose? t cash Formula Step 2 Determine the present value of an annuity Percentage Formula Tax burden is IS Text Title